Report

On

Over All Performance of

Bata Shoe Company
 Report on
Over All Performance of
Bata Shoe Company
Course Title: Introduction to Business
Course number: BUS-101
Prepared By:
GROUP NAME: Eclipse
GROUP MEMBERS
NAME ID NO:
Syela Islam 1121
Homayara chowdhury 1101
Samanta Afrin 1102
Ramis Faria 1125
Md.Toufiqur Rahman 1135
24th Intake Section: 03
Submitted To:
Sharmin Sultana
Lecturer in Management
Faculty of Business Administration

Bangladesh University of Business & Technology (BUBT)

Mirpur, Dhaka-1216
Date of Submission: 07.05.2011

Letter of transmittal
7th
, December, 2011
The Course Advisor
Sharmin Sultana
Lecturer in Management
Bangladesh University of Business and Technology

Subject: Submission of a report on Bata Shoe Company

Dear Sir,
We would like to thank you for assigning us this subject to prepare analysis. This task has
been given us the opportunity to explore one of the most important analysis which is very
important in our practical life.
Our assignment was to analyze over all performance of Bata Shoe Company for
the course Introduction to Business. It was a great pleasure for us to have such type of
opportunity to work on this topic.
Finally we would like to thank you for valuable guidance & supportive in preparing this
report. We will be grateful for any clarification when required. We will be highly obliged
if you are kind enough to approve this report and provide your valuable judgment on it.

Sincerely yours
On Be Half of the Group “ECLIPSE”
 Acknowledgement
First of all we give our heartfelt thanks to Almighty Allah to give us the
ability for preparing this report successfully.

We wish to express our deep sense of gratitude and sincere thanks to our Course Teacher
Sharmin Sultana for giving us this opportunity to prepare this paper and also for his
guidance, sustained interest, constant encouragement and his confidence in our ability to
do the work and finally motivating inspiration, kind of directions, valuable suggestions &
advices.

We also deeply wish to express our gratitude to our friends and well-wishers for helping
us in making this paper with a grand success.

Finally we wish to extend our heartfelt thanks to the Faculty Members of the BUBT for their
encouragement and valuable suggestions. . Thanks to all those persons, who have
assisted us, with co- operation, books and articles & the other important
materials.

Table of contents
Chapter Subject Page no:
Executive Summery 01

01. Introduction: 02-04

1.1 Report Background
1.2 Significance

1.3 Scope of report

1.4 Objective of report
1.5 Methodology
1.6 Limitation of the study

02. Over view of Bata Shoe Company: 05-21

2.1 Company History:
2.2 Vision, Mission, Goal, Culture.
2.3 Customer Service:
2.4 SWOT Analysis:
2.5 Marketing mix analysis:
2.6 Other activities:
2.7 HR Development:
2.8 Current Market Position:
2.9 Income Statement:
2.10 Balance sheet:

03. Findings & Recommendation: 22-23

3.1 Findings:
3.2 Recommendation:

04. Conclusion: 24
 Executive Summery

This report is prepared as a requirement of BBA program on the course of Introduction

To Business. Our report objective is trying to know about the overall performance of
Bata Shoe Company that will help us how to be a successful marketer, leader, organizer
etc. This report focus on overall performance of Bata shoe company. Its Vision is to
become the front ranking multiple shoes company in the world. It mission are To protect
our people, Customers and communities. To protect our natural environment in order to
help sustain human development. International guidelines have been developed in the
areas of environment, health and safety. We also discuses about the SOWT and
Marketing mix analysis of this company then we find out some problems of this company
and try to provide some suggestions for this problem.
 Chapter – 01
Introductio
n

1.1 Report Background:

As a student of BBA it is very important to know about the marketing system of an

organization. So we visit to “The Bata shoe company web side” & try to know about the
over all performance of Bata shoe company. Our report is based upon the over all
performance of Bata shoe company. The report will definitely benefit us to
increase the knowledge about the organisational activities of a shoe company.

1.2 Significance:

This report is the result of all of our group members did the individual enquiry of the process
of it. And we have completed this Ratio analysis successfully. This report contains all the
Information that we gather at the time of our enquiry in the Bata shoe company. In the short time
of making this report we worked together to complete it day to day. We worked hard and soul.
All these information will help the management to identify various scopes and limitations
Of the Institution and Project department. Besides, it would be a great opportunity for us to
get familiar with this system. So this study is very significant for both the company and for
all of us.

1.3 Scope of report:

As we are preparing the report on Bata shoe company, so it is very easy to collect
all the related information, which will be required for preparing a report. That will
help us develop our future career.

1.4 Objective of report:

Try to know about the overall performance of Bata Shoe Company that will help us how to be a
successful marketer, leader, organizer etc.

1.5 Methodology:

 Research design:
 Exploratory research means to gather Preliminary information that
will help to define the problem and suggest hypotheses. In our report we give a lot of
information about Bata Shoe Company. Then we find out its problems and try to give
hypotheses. So our report design is exploratory research.

 Sources of data:
To gather company information we use secondary data.

Secondary data

Secondary data consist of information that already exists somewhere, having been
collected for another purpose. Secondary data provided a good starting point for research
& often help to define research problem & objectives. This is available more quickly & at
a lower cost then primary data. We collect secondary data from http://www.bata.com

 Data collection process:

We collect the secondary data through the internet.

1.6 Limitation of the study:

Every organization has some own secrecy, which cannot be & should not be disclosing to
an outsider. So we had some limitations to enter in to the affairs of the company in depth.
The limitations are-
Lack of information

Information on which is so important for prepare a report. The main limitation of our
making report is lack of information. The limited sources of secondary information & the
controlled accessibility caused difficulty in getting the confidential information.

Lack of time

Our course duration is in limit time. In this short time we can not prepare our report
properly because we can not visit the branches of Bata Shoe Company.

Lack of professional knowledge

As a student we are not professional about such type of task. For lack of professional
knowledge we can not make our report properly.
 Chapter – 02
Over view of Bata
Shoe company

2.1 Company History:

Bata Ltd. is a privately owned global shoe manufacturer and retailer headquartered in
Ontario, Canada. The company is led by a third generation of the Bata family. With
operations in 68 countries, Bata is organized into four business units. Bata Canada, based
in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata Europe
serves the European market with 500 stores. With supervision located in Singapore, Bata
International boasts 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally,
Bata Latin America, operating out of Mexico City, sells footwear throughout Latin
America. All told, Bata owns more than 4,700 retail stores and 46 production facilities.
Total employment for the company exceeds 50,000.

Bata Bangladesh is affiliated to the Bata Shoe Organization, the world's largest footwear
manufacturing and marketing organization. Started operation in Bangladesh in 1962,
Incorporation in Bangladesh in 1972.

Currently, Bata Bangladesh operates 2 manufacturing plant Tongi and Dhamrai, Bata
Bangladesh is producing around 110,000 pairs of shoes daily. It has a modern tannery
with the latest technological facilities to process 5 million square feet of leather yearly.

Address:
Bata Shoe Company (Bangladesh) Ltd.
Tongi, Gazipur. Bangladesh.

Tel: +880 2 9800501-5

Fax: +880 2 9800511

Key Dates:
1894: The Bata family establishes a company in Zlin, located in what is now the Czech
Republic.
1932: Founder Tomas Bata dies in an airplane accident.
1939: The Company relocates to Canada after the movement of German military forces
into Eastern Europe.
1945: Czechoslovakia business operations are nationalized by the new communist
government following World War II.
1991: Bata returns to the Czech Republic following fall of the communist regime.
1994: Thomas J. Bata, the son of the company's founder, retires.
1962: Started in Bangladesh.
2001: Thomas J. Bata, Jr., becomes chairman and CEO.

2.2 Vision, Mission, Goal, Culture.

Vision:
 The vision of this company is to become the front ranking multiple shoes
company in the world.

Mission:
The Bata Environmental Mission Statement is:

► To protect our people, Customers and communities.

► To protect our natural environment in order to help sustain human development.

► International guidelines have been developed in the areas of environment, health and
safety.

Goal:
The goals of this Company are:

 Provide right products to the consumer,

 Provide high quality consumer service’
 Input high quality product

Culture:

Bata companies have a tradition of being good corporate citizens and seek to contribute
to the well-being of the countries and communities where they operate.
Bata strives to develop long-term partnership with its suppliers and business associates.
Each Bata company around the world is committed to ensuring that operations are
conducted ethically

2.3 Customer Service:

Bata’s commitment to service continues to this day, from the designer’s sketchbook
through to the performance of our shoes on a customer’s foot. Bata companies strive to
supply the right products, at the right time, at the right price, and in a manner that fulfils
our service commitments to both retail and wholesale customers.

2.4 SWOT Analysis:

Managing the marketing function begins with a complete analysis of the organization’s
situation. The market should conduct a SWOT analysis.

The swot analysis is the observation over an organization of its-

► Strength,
►Weakness,
► Opportunities, and
► Threat.

We can see it in this way-

Strengt
Weakne
h
ss

Opportu
nities Threat

The SWOT analysis of Bata Shoe Company is given below:

Strength:
 1. Intention of sale environment: Bata Shoe Company has an intention
of creating a profitable sale environment in them.

2. Service motive: Bata Shoe Company has the motive of better service
giving to the consumer.

3. Flexibility: Bata Shoe Company is a flexible departmental store. It can

perform its business activities both in much or less space.

4. Market research: The authority does a research over the market

position, ups and downs of prices, needs and wants of the customer to take important
marketing decision.

5. Supply of goods according to new fashion: It serves the

products to the consumer according to the new style and fashion.

Weakness:

1. Delay in decision making: The authority has to take decision by

consulting with other members. Sometime long term discussion and arguing make the
decision time consuming.

2. Lack of advertising: Advertisement provided by Bata Shoe Company

is not sufficient. The net information does not meet to our need.

Opportunities:

1. Good will: Bata Shoe Company has created a good will among the
consumer by providing better service.
 2. Direct communication: It maintains a direct communication with the
consumer

3. Creating relationship: Bata Shoe Company creates direct relationship

with consumer.

Threat:
1. Competitors: Powerful multiple stores like Apex, Afjal are competitors of
Bata shoe company.

2. Price rate: According to the changes to the demand authority has to less the
price rate of commodity. It causes loss for the company.

2.5 Marketing mix analysis:

 At first we need to know what marketing mix is. Marketing mix is the set of controllable
tactical marketing look- product, price, place and promotion. The firm blends to produce
the response it wants in the target market.
So 4p’s is the set of controllable tactical marketing tools-

 Product
 price
 place
 promotion

In the terms of Bata shoe Company the 4p’s can be describe as:

Product

Bata Shoe
Promotion Company Price

Place

Products:

The Bata Company produces three types of products. These are:

 1. Male product
2. Female product
3. Children product

1. Male product

2. Female product
3. Children product:

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Price;
As we know that Bata is a multiple shoe company. So price of the products are fixed.
They generally sales shoes for three levels of people in society.

• High level price • 2000 to 12000

• Mid level price • 500 to 2000

• Lower level price • 100 to 500
Place:
The Head office of Bata Company is situated at Tongi(gazipur). They have
their own agents in following places:

o Dhaka
o Gazipur
o Sylhet
o Dinajpur
o Rangpur
o Rajshahi
o Mymensi
ng
o Jessore
o Narayang
ong
o Comilla
o Khulna
o Barisa
o Chittagon
g
Promotion:
Bata Shoe Company uses their promotion skill in some tact’s that persuade their
customer to buy the product.

 They do advertising for their new or developing product in the newspaper and
television.
 They do personal selling which turn their possible consumer in real consumer.
 Bata Shoe Company uses their sales promotion tact by giving discount.
 Bata Shoe Company maintains a direct communication to the customer.

2.6 Other activities:

o Long service award Ceremony held in Bangladesh:

Recipients of Long Service Awards-2008 with Mr. Jorge Carbajal and Mr. Fernando
Garcia.
A Long Service Award ceremony for the employees of Bata Bangladesh was held earlier
this year. A total of 62 employees who have completed 25 years of continuous service in
the Company received the awards including Company Manager, Mr. Douglas Hearns.

o Bangladesh Cricket bags three year shirt sponsor:

Bangladesh cricket bags three-year shirt sponsor

The Bangladesh Cricket Board (BCB) has agreed a shirt sponsorship deal with
multi-national footwear retailer Bata from January 2009 to December 2011.

The deal was announced at a ceremony at the Mirpur Sher-e-Bangla National

Stadium in Dhaka last week. Negotiated by UK-based agency Nijjar Sports
Management, the sponsorship is worth $225,000.
 2.7 HR Development:

Method of Employee Selection in Bata:

Bata company follows some steps to appoint new employee. They generally appoint
employees from the external source .They follows some steps to select an employee. The
steps are given bellow-

Steps prior to selection:

1. Collecting departmental requisition: In the beginning of this stage .Bata

company generally determine –from where .how many employees they should be
appointed. They also inform that in how many days it will take to collect employee. After
getting requisition from different departments. They take the primary decision of taking
employee.

2. Determine of source: After getting the requisition they determine from which
source they will collect employee.

Source of Recruitment of Bata: Bata Company has lots of sources to take

employee. They generally takes employee in 2 ways –

1) Internal sources
2) External sources

1. Internal sources: Bata Company sometimes collects employees from those

employees who are still active in the organigation.

A) Promotion: Bata Company gives promotion to the experienced employees in higher

position. By promoting they take new employee.
B) Recommendation of employed person: Bata Company sometimes take employees
from the organization.

C) Recommendation of trade union: Bata Company sometimes takes trade union from the
organization.

2. External sources:
Searcher of employment: Invested workers gives appointed liters in
organigation .They also collect employees from the applicants.

Advertisement: Bata company generally collect employees by advertising.They

advertises in different journals to collect employee.

Vocational training institute: There are lots of Government and private

institutions where training is provided. Bata Company collects necessary employees from
institions.
Advertising: As we know Bata Company generally collects employees from the
external resources so they give advertises in many journels. They also mention their
regulations and requirements in the advertise.

Steps involve in employee selection: Obtaining letter of applications and soiting

out: The interested people responses to the advertisement in the given time .After getting
the appointment letter they select the appointment letter and issue a card for the written
test.

Conducting Test: As we know Bata is a multi- national company in world .So they
generally take written test to take any employee .To evaluate the quality of the employee
they take to these steps –

• Efficiency test
• Intelligence test
• Aptitude test
• Personality test

Taking Interview: Bata company takes interview of these candidates who has passed
the test .Somtime they also take voice –viva .

Primary selection: After passing test and viva test a candidate is selected in primary
level.
Medical test: After primary selection they take medical test of the candidate .Because the
ability to work depends on the physical fitness of an employee.

Final selection: Bata Company selects those candidates who has passed all the stages.
Sometimes they makes a waiting list for the candidates.
Training methods of Bata: Bata Company develops the skills of an employee
indifferent ways:

• Internship
• Coaching
• Seminars
• Conference

Bata Company has created a huge reliable market by using better technology. They use
Original leather, equipments that provide modern quality, quality measuring scale,
trained workers, modern transportation system, and better chemical quantity to make
better shoes that stays within the durability of more than one year.

Motivational process: Bata Company uses two type of Motivational process to

influence workers to work more attentively.

Motivational process

Positive Motivation Negative Motivation

Positive Motivation:

1. Salary: Bata Company give the workers remuneration which works as a

positive motivation.
2. Bonus: The company gives the workers occasional bonus by which the
workers are influenced.
3. Loan facilities: There is an opportunity of taking loan form the company
for the worker.
4. Promotion: The Company gives the workers promotion which helps the
workers to work with more sincere ness.
5. Financial security: Bata Company provides provident fund, group
insurance, pension facility also.
6. Attractive work: The Company often takes attractive and challenging works
Which make the work more interesting to
the workers.
.
7 Appreciation: The company authority gives the workers rewords for their
Better performance.
NEGATIVE MOTIVATION:

1. Demotion: The Company authority gives demotion to the workers who are
not sincere in their works.
2. Punishment: The company has punishment system if any worker dose not
attend office without any pre-permission or come late in the office.
3. Discharge: If any worker proves as an insincere person then the authority
also has a system of discharging workers from the job.
4. Lay-off: If any possibility of miss-understanding or time passing habit arises
among the workers then the authority announce for the Lay-off.

2.8 Current Market Position:

Now-a-days Bata is one of the most leading companies in Bangladesh.

It takes a huge amount of market share in current Bangladeshi Economic market.
Following figure shows its current market share.

Others
Afjal 4%
6%
Bata
Paggasas
45%
15% Bata
Appex
Paggasas
Afjal
Others

Appex
30%
 2.9 Income Statement:

PERIOD ENDING 31-Aug-09 31-Aug-08 31-Aug-07

Total Revenue 11,724,000 11,365,000 8,563,000

Cost of Revenue 4,962,000 5,188,000 4,277,000

Gross Profit 6,762,000 6,177,000 4,286,000

Operating Expenses

Research Development 1,098,000 980,000 780,000

Selling General and Administrative 2,037,000 2,312,000 1,895,000

Non Recurring 524,000 164,000 193,000

Others - - -

Total Operating Expenses - - -

Operating Income or Loss 3,103,000 2,721,000 1,418,000

Income from Continuing Operations

Total Other Income/Expenses Net (7,000) 315,000 57,000

Earnings Before Interest And Taxes 3,096,000 3,036,000 1,475,000

Interest Expense 129,000 110,000 139,000

Income Before Tax 2,967,000 2,926,000 1,336,000

Income Tax Expense 845,000 899,000 402,000

Minority Interest (24,000) (20,000) (12,000)

Net Income From Continuing Ops 2,098,000 2,007,000 922,000

Non-recurring Events

Discontinued Operations 11,000 17,000 71,000

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -
Net Income 2,109,000 2,024,000 993,000

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares $2,109,000 $2,024,000 $993,000

2.10 Balance sheet:

PERIOD ENDING 31-Aug-09 31-Aug-08 31-Aug-07

Assets

Current Assets

Cash And Cash Equivalents 1,956,000 1,613,000 866,000

Short Term Investments 108,000 - -

Net Receivables 2,851,000 3,147,000 2,355,000

Inventory 2,934,000 2,453,000 1,719,000

Other Current Assets 34,000 396,000 144,000

Total Current Assets 7,883,000 7,609,000 5,084,000

Long Term Investments 677,000 636,000 -

Property Plant and Equipment 3,609,000 3,323,000 2,656,000

Goodwill 3,218,000 3,132,000 2,625,000

Intangible Assets 1,371,000 1,531,000 1,415,000

Accumulated Amortization - - -

Other Assets 376,000 760,000 473,000

Deferred Long Term Asset Charges 743,000 1,000,000 730,000

Total Assets 17,877,000 17,991,000 12,983,000

Liabilities

Current Liabilities

Accounts Payable 3,116,000 3,522,000 2,545,000

Short/Current Long Term Debt 135,000 24,000 270,000

 Other Current Liabilities 505,000 893,000 260,000

Total Current Liabilities 3,756,000 4,439,000 3,075,000

Long Term Debt 1,736,000 1,792,000 1,150,000

Other Liabilities 1,688,000 1,616,000 1,255,000

Deferred Long Term Liability Charges 641,000 770,000 -

Minority Interest - - -

Negative Goodwill - - -

Total Liabilities 7,821,000 8,617,000 5,480,000

Stockholders' Equity

Misc Stocks Options Warrants - - -

Redeemable Preferred Stock - - -

Preferred Stock - - -

Common Stock 6,000 6,000 6,000

Retained Earnings 2,682,000 1,138,000 (405,000)

Treasury Stock (1,577,000) (1,177,000) (814,000)

Capital Surplus 9,695,000 9,495,000 9,106,000

Other Stockholder Equity (750,000) (88,000) (390,000)

Total Stockholder Equity 10,056,000 9,374,000 7,503,000

Net Tangible Assets $5,467,000 $4,711,000 $3,463,000

 Chapter –
03
Findings &
Recommendatio
n
 3.1 Findings:

After preparing this report we come to know about various important issues. We
have also got the following findings;

♣ Is a multiple shoe company. Usually they sale all kinds of shoes

♣ We have come to know this Bata Company produce three kinds of products; for
male, for female and for children.
♣ They also sell those shoes which are attracted by the teenagers. Exp: Gladiator
shoes.
♣ We have also known that in different occasion Bata Company sells some new
shoes. They also give discounts to the customers in different occasion and
decorate the market nicely. The shoes price of Bata Company is fixed price.
♣ All shoes of Bata Company are displayed for the customer.
♣ The customer takes products of their own hands then they paid the price in the
cash counter.
♣ All branches of Bata Company are not same decorated.
♣ The casher is very careful for calculating the price of products.
 3.2 Recommendation:

.We have sited different Web site of. Bata Company. After visiting these branches and
analyses it we would like to give some recommendations. These are as follows:-

♣ It should be more wide and specious.

♣ The parking system of this market should be in that way, where buyers can easily
park their cars.
♣ If they imports foreign shoes. Directly then they sells it at less price so the
consumer get more satisfaction.
♣ They should launch more improved shoes for consumers.
♣ Their technology should be improved.
♣ They should use more modern machines to produce high quality shoes.
Chapter – 04
Conclusions
 Conclusion:
Bata company is one of the largest multiple shoe company in Bangladesh as well as in the
world. Their products quality is very high and marketing Process is also well .After all
they faces some problems, we indicate these problems in our report, and gave some
recommendation. We wish if they follow the recommendation they will able to remove
their problems and they will also able to achieve their vision, mission, and goal.

Best of luck for Bata shoe company.

References:

o www.bata.com
o www.goole.com
o www.wkipedia.com
o Bata related person
Than
k
you.